Apartment and condominium markets gain momentum in Q2

Posted Date: 9/3/2013

[Washington, D.C.] Production of apartments and condominiums gained momentum in the second quarter of 2013, according to the latest Multifamily Production Index (MPI), released today by the National Association of Home Builders (NAHB). The index increased nine points to 61, which is the highest reading since its inception in 2003.

The MPI measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100. The index and all of its components are scaled so that any number over 50 indicates that more respondents report conditions are improving than report conditions are getting worse.

"Multifamily developer confidence is currently at an all-time high according to our survey results, and we expect to see that continue for the foreseeable future," said W. Dean Henry, chairman of NAHB's Multifamily Leadership Board. "Much of the consumer demand that we are now seeing is coming from a large generation of young people who are able to find jobs and establish their own households as the economy continues to improve."

"The apartment and condo sector continues to expand production," said NAHB chief economist David Crowe. "This increased level of activity is needed to meet current demand and to compensate for a serious lack of new units developed during the housing downturn."